Adastria : Summary of Consolidated Financial Results for FY2026/02 1Q has been posted.

Published: 2025-06-30 02:38:10 ET 2685.T

Published on 06/30/2025 at 02:38

[Japanese GAAP] June 30, 2025

Company name: Adastria Co., Ltd. Listing: Tokyo Stock Exchange

Stock code: 2685 URL: https://www.adastria.co.jp Representative: Osamu Kimura, Representative Director and President

Contact:

Itsuo Iwakoshi, Senior Vice President, General Manager of Administration Division, Head of Corporate Planning Office

Scheduled date of payment of dividend: -

Preparation of supplementary materials for financial results: Yes

Tel: +81 3 5466 2060

Holding of financial results meeting: Yes (for investors)

(All amounts are rounded down to the nearest million yen)

Consolidated results of operations (Percentages shown for net sales and incomes represent year on year changes)

Net sales

Operating profit

Ordinary profit

Net income attributable

to owners of the parent

Million yen

Three months ended May 31, 2025

77,464

4.7

5,603

(6.8)

5,423

(13.8)

4,374

(0.7)

Three months ended May 31, 2024

74,001

8.1

6,014

(4.2)

6,288

(1.0)

4,405

(1.3)

Note: Comprehensive income Three months ended May 31, 2025: 3,839 million yen (down 19.5%)

Three months ended May 31, 2024: 4,770 million yen (down 0.6%)

Net income per share

Diluted net income per share

Yen

Three months ended May 31, 2025

94.70

Three months ended May 31, 2024

97.27

Consolidated financial position

Total assets

Net assets

Equity ratio

Million yen

As of May 31, 2025

146,926

78,206

53.0

As of Feb. 28, 2025

133,108

77,200

57.9

Reference: Shareholders' equity As of May 31, 2025: 77,823 million yen As of Feb. 28, 2025: 77,102 million yen

Dividend per share

Q1-end

Q2-end

Q3-end

Year-end

Total

Fiscal year ended Feb. 28, 2025

Fiscal year ending Feb. 28, 2026

Yen

35.00

Yen

55.00

Yen

90.00

Fiscal year ending Feb. 28, 2026

(forecast)

45.00

90.00

Note: Revision to the most recently announced dividend forecast: None

(Percentages represent year on year changes)

Net sales

Operating profit

Ordinary profit

Net income attributable to owners of the parent

Net income per share

Full year

Million yen

305,000

4.1

Million yen

19,000

22.5

Million yen

19,000

19.0

Million yen

12,400

29.0

Yen

267.86

Note: Revision to the most recently announced dividend forecast: None

Significant changes in scope of consolidation during the period: Yes

Newly added: 1 (KARRIMOR International Ltd.) Excluded: -

Application of special accounting methods for presenting quarterly consolidated financial statements: None

Changes in accounting policies and accounting based estimates, and restatements

Changes in accounting policies due to revisions in accounting standards, others: Yes

Changes in accounting policies other than 1) above: None

Changes in accounting-based estimates: None

Restatements: None

Number of outstanding shares (common stock)

Number of shares outstanding at the end of the period (including treasury shares)

As of May. 31 2025: 48,800,000 shares As of Feb. 28 2025: 48,800,000 shares

Number of treasury shares at the end of the period

As of May. 31 2025: 2,699,054 shares As of Feb. 28 2025: 2,506,369 shares

Average number of shares outstanding during the period

Three months ended May 31, 2025: 46,187,383 shares Three months ended May 31, 2024: 45,286,292 shares

Note 1: Review by certified public accountants or an audit firm of the attached quarterly consolidated financial statements: No

Note 2: Cautionary statement with respect to forward looking statements

Forward looking statements in this report are based on currently available information and certain assumptions judged to be reasonable. Actual results may differ significantly from these forecasts for a number of factors. Please refer to the section " 1. Overview of Results of Operations (3) Explanation of Consolidated Forecast and Other Forward Looking Statements" shown above.

Overview of Results of Operations 2

Results of Operations 2

Financial Position 4

Explanation of Consolidated Forecast and Other Forward Looking Statements 4

Quarterly Consolidated Financial Statements and Notes 5

Quarterly Consolidated Balance Sheet 5

Quarterly Consolidated Statements of Income and Comprehensive Income 7

Notes to Quarterly Consolidated Financial Statements 9

Going Concern Assumption 9

Changes in the Scope of Consolidation or Application of the Equity Method 9

Changes in Accounting Policies 9

Quarterly Consolidated Balance Sheet 9

Notes to Quarterly Consolidated Statements of Cash Flows 9

Segment Information, etc. 11

Subsequent Events 13

Supplementary Information 14

Sales by Brand and Region 14

Sales by Product Category 14

Number of Stores 15

Consolidated Results (Million yen)

First three months of FY2/25

(Mar. 1, 2024 - May 31, 2024)

First three months of FY2/26 (Mar. 1, 2025 - May 31, 2025)

YoY Change

YoY Change (%)

Net sales

74,001

77,464

3,463

4.7%

Operating profit

6,014

5,603

(410)

(6.8%)

Ordinary profit

6,288

5,423

(865)

(13.8%)

Net income attributable to owners of the parent

4,405

4,374

(31)

(0.7%)

The employment and personal income environment remained stable, and inbound demand stayed firm, supporting a gradual economic recovery during the first quarter of the current consolidated fiscal year. However, prolonged price increases, particularly in food, continued to affect consumer sentiment. U.S. tariff policies and uncertainty in the international landscape also present downside risks to the overall economy.

Platform

We aim to achieve a gross merchandise value of 100 billion yen by accelerating new external brand store openings on our e-commerce site, and ST, as a mall and media platform and expanding ID (customer base) and LTV (lifetime value). We also aim to grow revenue in our production business, which provides brand content to external partners, and our solutions

business, which sells systems.

Global

We will accelerate investment in Southeast Asia, open stores, and implement the OMO strategy of our e-commerce platform developed in Japan to capture high economic growth in the region.

In Greater China, we will strengthen our multi-brand strategy to achieve stable growth.

Brand Retail

We strengthen our brand portfolio management and give customers more choices by transitioning to a multi-company structure, where each group company operates based on their respective

missions.

Against this backdrop, Adastria Co., Ltd. aims to position and ST as the driving force to generate synergies across group companies, as outlined in the Medium-Term Management Plan 2030 announced in April 2025. In doing so, we aim to evolve into a Play fashion! platformer that expands our reach through collaboration with customers and external partners. The strategies for priority areas in the medium-term management plan are as follows

Consolidated net sales for the first quarter of the consolidated fiscal year amounted to 77,464 million yen (up 4.7% year on year), operating profit was 5,603 million yen (down 6.8%), while ordinary profit was 5,423 million yen (down 13.8%) and net income attributable to owners of the parent was 4,374 million yen (down 0.7%).

Demand for casual fashion in the Apparel and Sundry Goods Related Business remained firm as temperatures rose, following a temporary slowdown in April due to unseasonably low temperatures. Sales increased 3.1% year on year, supported by a diverse product lineup driven by the multi-brand, multi-company strategy, along with promotions including TV commercials and point-reward programs. The net addition of the brands TODAY'S SPECIAL and GEORGE'S, which joined the Group through M&A in July of last year, also contributed to this growth.

Membership in the and ST e-commerce and point programs reached 20.2 million as of the end of the first quarter, up 500,000 from the end of the previous fiscal year, with 7.6 million active members. This growth resulted from continued customer engagement initiatives under the platform strategy, including promotions linking and ST with physical stores and collaborative products featuring popular characters and store staff. The number of brands and gross merchandise value also increased in the open-mall model on and ST, which allows external companies to list their products.

Overseas net sales (converted to yen) increased 21.4% year on year in mainland China, driven by strong performance in e-

commerce and the rollout of cost-efficient standard-format stores, despite ongoing pressure from the real estate downturn and weak consumer sentiment. In Hong Kong and Taiwan, physical stores and e-commerce under the multi-brand strategy continued to perform well, resulting in year-on-year sales growth of 5.2% and 15.9%, respectively. Net sales declined by 1.9% in the U.S., which we decided to withdraw in the previous fiscal year, due to continued weakness in the wholesale business.

New store openings in Thailand and the Philippines lead to higher net sales, and the overseas business overall recorded a 10.1% year-on-year increase in net sales.

Sales in Other (food and beverage business) increased 28.3% year on year, despite continued challenges in the food service industry, including rising raw material and utility costs and labor shortages. This result was supported by the change fiscal year-end and strong performance in overseas operations.

We improved the gross profit margin for the Apparel and Sundry Goods Related Business year on year. Our efforts to control inventories and limit discounts by supplying merchandise at the right time, right price, and in the right quantity contributed to this result, despite the ongoing depreciation of the yen. We also continued to enhance product value, adjust pricing, and expand new businesses. In Other (food and beverage business), rising procurement costs outpaced our efforts to revise prices and reduce costs, resulting in a lower gross profit margin. However, the consolidated gross profit margin improved 0.4 percentage points year on year to 56.6%.

Selling, general and administrative (SG&A) expenses increased due to higher advertising and promotion expenses and store rent stemming from stronger promotions, new store openings, and sales growth. As a result, the SG&A ratio declined by 1.3 percentage points year on year to 49.4%.

As a result, operating profit margin fell 0.9 percentage points to 7.2% and operating profit decreased 6.8%.

Non-operating expenses included foreign exchange losses of 238 million yen and extraordinary losses included an impairment loss of 53 million yen stemming from stores.

Business segment performance was as follows.

Apparel and Sundry Goods-Related Business

Net sales amounted to 73,660 million yen (up 3.7% year on year) and segment profit was 5,445 million yen (down 18.4%).

We opened 43 new stores (including 11 overseas) and closed 8 locations (including 2 overseas). As a result, the segment operated 1,592 stores (including 148 locations overseas) as of the end of the first quarter of the current consolidated fiscal year.

Other (Food and Beverage Business)

Net sales amounted to 3,826 million yen (up 28.2% year on year) and segment loss was 21 million yen (compared with a segment loss of 384 million yen in the previous fiscal year).

The segment opened 1 new location, resulting in a total of 77 stores in operation as of the end of the first quarter of the current consolidated fiscal year.

Disclaimer

Adastria Co. Ltd. published this content on June 30, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 30, 2025 at 06:37 UTC.